Speaking to Benzinga, Needham & Co Analyst Sean McGowan said that he expected Q4 bookings for Zynga Inc ZNGA to come in ahead of expectations at $214 million, up from $147 million.
McGowan was “looking for [a] more positive surprise than negative” and he mentioned that the company is hoping for more success in China.
McGowan added that he’s been telling investors that “between the equity ownership in their headquarters and their cash there’s not a lot of value being placed on the ongoing business...it is like a call option on things getting better.”
When it comes to playing earnings, McGowan noted that “there are so many shares it takes a lot to really move the needle.” The analyst concluded that “the stock is trading like no one knows what to make of it, it goes up, it goes down and there’s not a lot of reason for it.”
Heading into its earnings release, Zynga Inc traded at $2.67, down 4.99 percent.
Kevin Riley and Brianna Valleskey contributed to this report.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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